Sustainability has been of ever-increasing importance in the world of commercial units and property in general. Ensuring that our energy use and wastage at home and in commercial units is at a minimum plays an important part in reaching net zero and lowering our impact on the environment.
One of the main ways that domestic and commercial properties can measure their energy use and wastage, as well as find ways to improve it, is through an EPC (Energy Performance Certificate). This is a useful way for landlords, tenants, and the Government to understand the, erm, energy performance of a building. It is a concept that has been embraced by the Government to the extent that they have put it into law.
What is an Energy Performance Certificate?
An Energy Performance Certificate (EPC) is produced after an inspection carried out by a qualified energy surveyor, who looks at a range of aspects of a property relating to its energy use and wastage.
Some of the factors that are assessed include basics such as the property type and age, as well as others, such as the condition of the boiler, insulation measures installed, and whether the building has double glazing.
Once the inspection has been carried out, the inspector gives the building a rating from A to G (with A being the most energy efficient), as well as a list of recommendations for measures that can be carried out in order to improve this rating.
What is the Law regarding EPCs?
As we look to try to reduce climate change, EPCs are an important way to get a good understanding of the energy efficiency of a commercial unit, helping the Government to measure how we are doing as a country. They are also useful for potential tenants looking to rent a commercial unit, giving them an idea of how ‘green’ the building is, as well as an understanding of the potential cost of energy bills, and possible energy-saving measures that they could carry out in order to make the unit more environmentally friendly.
This all means that the British Government has based laws around the EPC. These laws changed in April 2025 and are also due to change in 2028 and 2030. It is important for businesses to keep updated regarding these laws.
When it comes to commercial units, the laws are as follows:
- An EPC is required when a commercial unit is constructed, sold or rented out, or if any significant changes have been made to the building. You must then show the EPC to potential buyers or renters.
- Most businesses must display their EPC (if you have members of the public coming to the unit and if you have over 500m2 of useful space).
- There are some exemptions – you can find out more information about these on the Government website. The unit must be upgraded or registered for an exemption.
- The EPC grading must be an E or over at the moment. This is set to rise to a grade C in 2028 and a grade B in 2030.
EPCs were first introduced in the UK in 2008, and since then, over 1.4 million commercial property assessments have been carried out in England and Wales. The rate has risen significantly over the past few years, especially since the Government introduced MEES (their Minimum Energy Efficiency Standards) – the laws relating to EPC ratings.
Having an EPC carried out is not only useful for businesses and the Government to understand the energy efficiency of the commercial unit, but also to help to predict energy bills, and importantly, help businesses to improve their energy efficiency.
For some, this could be as easy as replacing lightbulbs with LED lights or monitoring energy use and changing practices such as using sensors to ensure that lights are not on when nobody is in the room.
For others, measures could be bigger – getting a new heating or cooling system, insulating walls, floors, or roofs, fitting double glazing, or perhaps installing renewable energy sources such as solar panels. Although these might be a greater initial outlay, the ROI can hit pretty fast.
How is it going?
Data shows that between 2008 and 2021, the number of EPCs carried out on commercial units in England and Wales stayed at around 87,000 per year. The MEES really started to kick in in 2018, and the number had leapt to 113,000 in 2022, and 140,000 in 2023.
In 2019, the number of commercial units with a rating of ‘A’ was at 3%, and 10% with the lowest rating of ‘G’.
By 2024, however, the number of ‘A’ rated commercial units was at 7%, and only 0.6% were given a ‘G’ rating.
This shows significant improvements in the energy efficiency of many commercial units across the country, meaning that the lowest graded are making the changes that they need to bring their rating up, and that new constructions are being built with energy efficiency in mind (if not at the core of their design).
Landlords and Tenants
When it comes to the responsibility for the energy efficiency of a commercial unit, if it is concerning the building itself, it would normally be the responsibility of the landlord. There may be, of course, certain elements that the tenant would also have responsibility for.
In addition to the possibility of saving the money that is spent on energy within the commercial unit, there are other benefits to the tenant and landlord in ensuring that the recommended measures are installed.
For the tenant, for example, this includes less energy wastage and the ability to show that they are ‘greener’.
For landlords, this can mean the ability to ask for more money in the unit’s rental, improve the long-term prospects of the unit, and ensure that they do not need to fit these measures at some point in the future.
If you are a landlord of a commercial unit looking for tenants, we can help to match you with the best business for you. Likewise, we have a range of different commercial units for rent, including warehouses, retail units, office space, and workshops, so if you are looking for a commercial unit to rent, why not take a look at our website today?